The US Securities and Exchange Commission tweeted about investing in funds holding Bitcoin futures contracts. This has sparked optimism in the crypto community that the regulator could soon approve bitcoin exchange-traded funds (ETFs), especially those that invest in bitcoin futures.
Optimism is growing that the SEC will soon approve a Bitcoin futures ETF
The official Twitter account of the SEC’s Office of Investor Education and Advocacy tweeted Thursday, “Before investing in a fund that holds Bitcoin futures contracts, carefully weigh the potential risks and benefits.”
The tweet referred to an investor bulletin published jointly by the Office of Investor Education and Advocacy of the SEC and the Office of Customer Education and Outreach of the Commodity Futures Trading Commission (CFTC). The bulletin calls upon “Investors considering a fund with exposure to the Bitcoin futures market to carefully consider the potential risks and benefits of investing.”
Comments flooded Twitter from people speculating that the SEC will soon approve a Bitcoin futures ETF. A lot of people just exclaimed “bullish”.
One Twitter user wrote, “You probably wouldn’t post this if it wasn’t approved.” Another commented, “Posting this would very likely indicate that a BTC ETF might be coming next week.” A third person said, “This is a clear indication of what’s to come very, very soon.” As reported by Bitcoin.com News, the SEC could approve several Bitcoin strategy ETFs this month.
Bloomberg’s senior ETF analyst Eric Balchunas said:
Closer: The SEC just tweeted an Edu bulletin it wrote in June on Bitcoin futures and “Funds that hold Bitcoin futures”. Clearly a good sign and we [are] increase our odds to 85%.
Balchunas mentioned another sign that Bitcoin ETF approval is imminent. “Valkyrie just updated their Bitcoin Futures ETF prospectus (which usually only happens when the ranks get ready to launch). They added their ticker, $ BTF, although a fee has not yet been charged. I can’t say this is proof of a deal, but a good sign IMO, ”he tweeted on Wednesday.
However, since the investor bulletin was published in June and the SEC tweeted similar news about investing in funds with Bitcoin futures at the time, some people warned that Thursday’s tweet did not indicate Bitcoin ETF approval.
Economist and trader Alex Kruger commented, “The market interprets this SEC post to mean that the odds of Bitcoin futures ETFs have risen dramatically, but note that the SEC published the same thing back in June.”
Balchunas further detailed that the SEC last tweeted this bulletin on July 26th, the day before the mutual fund for Profunds’ Bitcoin strategy “went into effect” and two days before its launch. He concluded that if the pattern continues, “Proshares ETF will trade on Mon or Tue (which was our prediction all along).”
The crypto community is hoping the SEC will approve Bitcoin futures ETFs as SEC Chairman Gary Gensler has repeatedly signaled that he is open to this type of investment. He also said he was looking forward to staff reviewing Bitcoin futures ETF filings.
Do you think the SEC will approve a Bitcoin ETF this year? Let us know in the comment section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation to make an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.